Asian shares fall as global economy fears return

New York's main contract, West Texas Intermediate crude for delivery in May, gained 33 cents to $105.68 per barrel in the morning while Brent North Sea crude for May was up 41 cents at $123.55
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HONG KONG: Asian markets tumbled on Friday after worse-than-expected economic data from China and Europe stoked fresh concerns over global growth, bringing an end to a recent spell of optimism.
Tokyo fell 0.98 percent by the break, Hong Kong slipped 1.00 percent, Sydney shed 0.20 percent, Shanghai lost 0.40 percent and Seoul was 0.24 percent lower.
News on Thursday that manufacturing activity in China, the world’s number two economy, had hit a four-month low was compounded later in the day by figures indicating the eurozone was in recession.
Banking giant HSBC said its Purchasing Managers’ Index (PMI) for China had fallen to 48.1 in March, compared with a final reading of 49.6 in February.
A reading above 50 indicates the sector is expanding while a reading below 50 suggests a contraction.
The figures — which come after Beijing reported a huge February trade deficit and leaders lowered their growth target for the year — added fuel to fears that China’s economy is losing its strength.
Later in the day a composite PMI of manufacturing and services for the 17-nation eurozone by the Markit research firm fell more sharply than expected in March, pointing to a recession.
The survey of 4,500 manufacturing and services firms slowed to 48.7 in March after reaching 49.3 in February.
“It’s not really a surprise to anyone that factory activity is contracting”in the eurozone,” said Chris Hunter at Western Union Business Solutions in New
Zealand, according to Dow Jones Newswires.
But it was “worrying that the two biggest economies — Germany and France — are starting to fall back,” he said.
Adding to the downbeat numbers was news that Ireland’s economy shrank 0.2 percent in the fourth quarter, following a 1.1 percent contraction in the previous three months, placing it back into a technical recession.
The weak figures hit the euro in New York. The single currency tumbled to $1.3185 from $1.3238 earlier in the day and to 108.89 yen from 110.27 yen.
However, the euro recovered in Asia Friday, sitting at $1.3203 and 109.37 yen. The dollar bought 82.85 yen from 82.50 yen in New York.
Washington’s release of figures showing jobless claims had fallen again in the United States, continuing a medium-term trend, was unable to provide enough support to Wall Street.
The Dow fell 0.60 percent, the S&P 500 lost 0.72 percent and the Nasdaq gave up 0.39 percent.
Crude prices edged up following big falls Thursday in the United States.
New York’s main contract, West Texas Intermediate crude for delivery in May, gained 33 cents to $105.68 per barrel in the morning while Brent North Sea crude for May was up 41 cents at $123.55.
Gold was at $1,646.80 an ounce at 0330 GMT, compared with $1,639.05 late Thursday.

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No faith in trial of US massacre suspect: Afghan Taliban

KABUL: Afghanistan’s Taliban said on Friday that the militant group had no faith in any trial for the US soldier suspected of gunning down 17 civilians in a volatile southern province, and vowed revenge.
“This was a planned activity and we will certainly take revenge on all American forces in Afghanistan and don’t trust such trials,” Taliban spokesman Zabihullah Mujahid told Reuters by telephone from an undisclosed location.
US Army Staff Sergeant Robert Bales, accused of killing Afghan civilians in a shooting rampage in Kandahar province last week, will be charged with 17 counts of murder, a US official said on Thursday.

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Oil prices higher in Asian trade

SINGAPORE: Oil prices rose in Asian trade Thursday on data showing an improvement in US employment numbers as concerns over geopolitical tensions in the Middle East lingered.
New York’s main contract, West Texas Intermediate crude for delivery in May, gained 33 cents to $105.68 per barrel while Brent North Sea crude for May settlement was up 12 cents at $123.26.
“Oil has gone higher, supported by economic optimism in the United States and also concern about supply from Iran,” said Ken Hasegawa, energy desk manager at Newedge brokerage in Japan.
US government data released on Thursday showed that claims for unemployment benefits fell to a fresh four-year low last week, pointing towards a recovery in the country’s depressed labour market.
The US Labor Department said 348,000 initial jobless claims were filed in the week ending March 17, down from a revised 353,000 in the previous week.
Earlier this month it reported solid job creation for the third consecutive month in February, although the 8.3 percent unemployment rate was unchanged from January as more people sought jobs in the world’s biggest economy.
The standoff between the West and crude producer Iran continues to be a key factor affecting oil prices, analysts said.
The Islamic republic has threatened to shut the strategic Strait of Hormuz — a conduit for a fifth of the world’s oil supply — if it faces additional economic sanctions from the West for its controversial nuclear programme.
Much of the international community believes that Iran’s nuclear programme is geared towards obtaining an atomic weapon but Tehran denies the charges, saying it is for civil power generation and medical purposes only.

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